Carbon credit prices in China have fallen to their lowest point since mid-2023, pressured by an excess of supply and tepid demand amid ongoing adjustments to the national emissions trading system.<\/p>\n
The benchmark China Emission Allowances dropped to $8.25 (58.80 yuan) on Thursday, extending a nearly 40% slide since January, Bloomberg has reported.<\/p>\n
The decline follows the expiration of September compliance deadlines and renewed selling by firms seeking to offload surplus permits before their validity runs out.<\/p>\n
Relevant: China Plans Tougher Rules For Industry In World\u2019s Largest Carbon Market<\/a><\/p>\n Under China\u2019s existing framework, emitters are allowed to extend the life of unused allowances by selling them\u2014rather than letting them expire\u2014a feature that has contributed to mounting liquidity.<\/p>\n \u201cThis adds to today\u2019s supply, therefore increasing liquidity pressure and weighing on prices,\u201d analysts at BloombergNEF<\/a> noted in a recent briefing.<\/p>\n The carbon market<\/a> has been on a downward trajectory since peaking late last year, as policy tweaks and broader eligibility criteria have diluted credit values.<\/p>\n Tighter carryover rules introduced in 2024 have further pressured prices toward year-end, with companies offloading allowances they can no longer bank for future compliance periods, Bloomberg said.<\/p>\n